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    Arion Bank closes successful offering
    09.12.2011

    Arion Bank closes successful offering

    30% stake in Hagar hf. sold for ISK 4.9 billion or ISK 13.5 a share

    The public offering of shares in Hagar hf. closed at 4:00 p.m. on Thursday 8 December. The Corporate Advisory - Investment Banking division of Arion Bank hf. managed the offering and the subsequent listing of the company intended on NASDAQ OMX Iceland. The shares were sold by the bank’s subsidiary Eignabjarg ehf.

    The final size of the offering represents 30% of the issued shares of Hagar hf. and the final offer price is ISK 13.5 a share to all investors, counting approx. 3,000, who receive shares in the offering. The offering generates total proceeds of ISK 4,931 million and a total of 365,275,752 shares are sold.

    Around 12.5% of issued shares in Hagar were allocated to investors who submitted bids for ISK 100,000 to ISK 25 million worth of shares and each investor was allocated approx.. ISK 0.1-1.5 million. Around17.5% of issued shares in Hagar were allocated to investors who submitted bids for ISK 25 million to ISK 500 million worth of shares and each investor was allocated ISK 1.5-90 million.

    The due date of payment for the new shares is Wednesday 14 December 2011

    After the final due date investors cannot pay the purchase price, unless the seller decides to collect the amount owed.

    The first day of trading with the company’s shares on the main market of NASDAQ OMX Iceland is scheduled for 15 December 2011, to be announced by the stock exchange with at least one business day’s notice.

    Demand and allocation

    From the offering bids were received for a total of approx. ISK 40 billion, of which approx. ISK 95% were made at a price of ISK 13.5 a share or with instructions to accept whatever price was decided between ISK 11 and ISK 13.5 a share. The seller’s decision on the final size of the offering, the price and the allocation of shares to investors was based on the amount and price of the bids submitted by investors, the nature and size of investors and the objectives and terms of the offering as described in Hagar’s prospectus dated 26 November 2011. The aim of the seller was to diversify the shareholder base with public and professional investors and to obtain a satisfactory price for its holding.